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Employees aiming to work for longer

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A growing number of older workers are intending to continue in their jobs rather than retire, a new survey has suggested.

With the scrapping of the default retirement age taking effect as from 6 April, the news may mean extra pressures for employers.

The study, run by the Prudential, covered some 5,000 employees. Of these, some 38 per cent who were set to retire this year have now changed their plans and aim to continue working.

A fifth of those who decided not to retire pointed the finger at insufficient funds as the main reason for wishing to remain at work, while 40 per cent claimed that they would need to stay in their jobs until they are 70 in order to achieve a comfortable retirement.

Vince Smith-Hughes, head of business development at Prudential, said: “Compared with last year’s findings, there has been a sharp increase of almost 50 per cent in the number of people who are postponing retirement. Many of these people are choosing to do so because they wish to continue working, but there is a large proportion who simply cannot afford to give up work.

“The only realistic option for those who want to avoid having to delay their planned retirement is to start saving as much as they can as early as they can.

“However, as inflation remains high and disposable incomes are reduced, this research shows that people are postponing retirement to either build up their pension pots further or simply to continue in a job that they enjoy.”